USE THE INFORMATION BELOW FOR THE FOLLOWING PROBLEM(S) RS1U1B1itS1U1B0 = return for stock i during period t RS1U1B1mtS1U1B0 = return for the aggregate market during period t -Refer to Exhibit 5.6. What is the abnormal rate of return for Stock A when you consider its systematic risk measure (beta)?

A) -2.3 percent B) -0.3 percent C) 0.3 percent D) 2.3 percent E) 3.0 percent A) -2.3 percent B) -0.3 percent C) 0.3 percent D) 2.3 percent E) 3.0 percent

Exam 5: Efficient Capital Markets, Behavioral Finance, and Technical Analysis

Results of initial public offering (IPOs) studies tend to support the semi-strong EMH because it appears that prices adjusted rapidly after initial underpricing.

(True/False)

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Question 81

The prospect theory contends that utility depends on deviations from moving reference points rather than absolute wealth.

(True/False)

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(35)

Question 82

The weak form of the efficient market hypothesis contends that technical trading rules are of little value.

(True/False)

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Question 83

Technicians believe that when the relative strength index is stable or during a market, the stock should do well during a market.

(Multiple Choice)

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Question 84

USE THE INFORMATION BELOW FOR THE FOLLOWING PROBLEM(S) R_it = return for stock i during period t R_mt = return for the aggregate market during period t -Refer to Exhibit 5.1. What is the abnormal rate of return for Stock E during period t using only the aggregate market return (ignore differential systematic risk)?

(Multiple Choice)

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Question 85

To take advantage of long-run price movements in an efficient market, you must do a superior job of estimating the relevant variables that cause these long-run movements.

(True/False)

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Question 86

The breadth of the market measures the daily volume for a particular market.

(True/False)

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Question 87

If the 50-day moving average line crosses the 200-day moving average line from below on good volume, then this would be a bullish signal.

(True/False)

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Question 88

USE THE INFORMATION BELOW FOR THE FOLLOWING PROBLEM(S) R_it = return for stock i during period t R_mt = return for the aggregate market during period t -Refer to Exhibit 5.5. What is the abnormal rate of return for Stock A during period t using only the aggregate market return (ignore differential systematic risk)?

(Multiple Choice)

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Question 89

An investor who can do a superior job of estimating intrinsic value can consistently make superior market timing (asset allocation) decisions or acquire undervalued securities and generate above-average returns.

(True/False)

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Question 90

One of the potential disadvantages of technical analysis is that it can lead to investing too early, even before fundamental analysts do.

(True/False)

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(32)

Question 91

USE THE INFORMATION BELOW FOR THE FOLLOWING PROBLEM(S) R_it = return for stock i during period t R_mt = return for the aggregate market during period t -Refer to Exhibit 5.6. What is the abnormal rate of return for Stock A when you consider its systematic risk measure (beta)?

(Multiple Choice)

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Question 92

The random walk hypothesis contends that stock prices occur randomly.

(True/False)

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(43)

Question 93

If 10 percent of the stocks are selling above their 200-day moving average, the market is considered to be oversold.

(True/False)

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(34)

Question 94

According to the weak-form efficient market hypothesis, which of the following types of information are fully reflected in stock prices?

(Multiple Choice)

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Question 95

USE THE INFORMATION BELOW FOR THE FOLLOWING PROBLEM(S) Daily closings for the Dow Jones Industrial Average are given in the table below. -Refer to Exhibit 5.7. Calculate a four-day moving average for day 5.

(Multiple Choice)

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Question 96

Technical analysts believe that security prices do not adjust rapidly.

(True/False)

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Question 97

Examples of anomalies providing contrary evidence to the semi-strong efficient market hypothesis include studies of all of the following EXCEPT

(Multiple Choice)

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Question 98

Fundamentalists contend that past price movements will indicate future price movements.

(True/False)

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Question 99

Abnormal returns associated with rankings by a major advisory service are associated with

(Multiple Choice)

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Question 100

Showing 81 - 100 of 162

Results of initial public offering (IPOs) studies tend to support the semi-strong EMH because it appears that prices adjusted rapidly after initial underpricing.

The prospect theory contends that utility depends on deviations from moving reference points rather than absolute wealth.

The weak form of the efficient market hypothesis contends that technical trading rules are of little value.

Technicians believe that when the relative strength index is stable or during a market, the stock should do well during a market.

To take advantage of long-run price movements in an efficient market, you must do a superior job of estimating the relevant variables that cause these long-run movements.

The breadth of the market measures the daily volume for a particular market.

If the 50-day moving average line crosses the 200-day moving average line from below on good volume, then this would be a bullish signal.

An investor who can do a superior job of estimating intrinsic value can consistently make superior market timing (asset allocation) decisions or acquire undervalued securities and generate above-average returns.

One of the potential disadvantages of technical analysis is that it can lead to investing too early, even before fundamental analysts do.

USE THE INFORMATION BELOW FOR THE FOLLOWING PROBLEM(S) R_it = return for stock i during period t R_mt = return for the aggregate market during period t -Refer to Exhibit 5.6. What is the abnormal rate of return for Stock A when you consider its systematic risk measure (beta)?

The random walk hypothesis contends that stock prices occur randomly.

If 10 percent of the stocks are selling above their 200-day moving average, the market is considered to be oversold.

According to the weak-form efficient market hypothesis, which of the following types of information are fully reflected in stock prices?

USE THE INFORMATION BELOW FOR THE FOLLOWING PROBLEM(S) Daily closings for the Dow Jones Industrial Average are given in the table below. -Refer to Exhibit 5.7. Calculate a four-day moving average for day 5.

Technical analysts believe that security prices do not adjust rapidly.

Examples of anomalies providing contrary evidence to the semi-strong efficient market hypothesis include studies of all of the following EXCEPT

Fundamentalists contend that past price movements will indicate future price movements.

Abnormal returns associated with rankings by a major advisory service are associated with

The Investment Setting

The Investment Setting: Part A

Asset Allocation and Security Selection

Asset Allocation and Security Selection: Part A

Organization and Functioning of Securities Markets

Security Market Indexes and Index Funds

An Introduction to Portfolio Management

An Introduction to Portfolio Management: Part A

An Introduction to Portfolio Management: Part B

Asset Pricing Models

Equity Valuation

The Top-Down Approach to Market, Industry, and Company Analysis

The Practice of Fundamental Investing

Equity Portfolio Management Strategies

Bond Fundamentals and Valuation

Bond Analysis and Portfolio Management Strategies

An Introduction to Derivative Markets and Securities

Forward, Futures, and Swap Contracts

Option Contracts

Professional Money Management, Alternative Assets, and Industry Ethics

Evaluation of Portfolio Performance

Filters

Exam 5: Efficient Capital Markets, Behavioral Finance, and Technical Analysis

Results of initial public offering (IPOs) studies tend to support the semi-strong EMH because it appears that prices adjusted rapidly after initial underpricing.

The prospect theory contends that utility depends on deviations from moving reference points rather than absolute wealth.

The weak form of the efficient market hypothesis contends that technical trading rules are of little value.

Technicians believe that when the relative strength index is stable or ____ during a ____ market, the stock should do well during a ____ market.

To take advantage of long-run price movements in an efficient market, you must do a superior job of estimating the relevant variables that cause these long-run movements.

The breadth of the market measures the daily volume for a particular market.

If the 50-day moving average line crosses the 200-day moving average line from below on good volume, then this would be a bullish signal.

An investor who can do a superior job of estimating intrinsic value can consistently make superior market timing (asset allocation) decisions or acquire undervalued securities and generate above-average returns.

One of the potential disadvantages of technical analysis is that it can lead to investing too early, even before fundamental analysts do.

USE THE INFORMATION BELOW FOR THE FOLLOWING PROBLEM(S) Rit = return for stock i during period t Rmt = return for the aggregate market during period t -Refer to Exhibit 5.6. What is the abnormal rate of return for Stock A when you consider its systematic risk measure (beta)?

The random walk hypothesis contends that stock prices occur randomly.

If 10 percent of the stocks are selling above their 200-day moving average, the market is considered to be oversold.

According to the weak-form efficient market hypothesis, which of the following types of information are fully reflected in stock prices?

USE THE INFORMATION BELOW FOR THE FOLLOWING PROBLEM(S) Daily closings for the Dow Jones Industrial Average are given in the table below. -Refer to Exhibit 5.7. Calculate a four-day moving average for day 5.

Technical analysts believe that security prices do not adjust rapidly.

Examples of anomalies providing contrary evidence to the semi-strong efficient market hypothesis include studies of all of the following EXCEPT

Fundamentalists contend that past price movements will indicate future price movements.

Abnormal returns associated with rankings by a major advisory service are associated with

The Investment Setting

The Investment Setting: Part A

Asset Allocation and Security Selection

Asset Allocation and Security Selection: Part A

Organization and Functioning of Securities Markets

Security Market Indexes and Index Funds

An Introduction to Portfolio Management

An Introduction to Portfolio Management: Part A

An Introduction to Portfolio Management: Part B

Asset Pricing Models

Equity Valuation

The Top-Down Approach to Market, Industry, and Company Analysis

The Practice of Fundamental Investing

Equity Portfolio Management Strategies

Bond Fundamentals and Valuation

Bond Analysis and Portfolio Management Strategies

An Introduction to Derivative Markets and Securities

Forward, Futures, and Swap Contracts

Option Contracts

Professional Money Management, Alternative Assets, and Industry Ethics

Evaluation of Portfolio Performance

Filters

Technicians believe that when the relative strength index is stable or during a market, the stock should do well during a market.

USE THE INFORMATION BELOW FOR THE FOLLOWING PROBLEM(S) R_it = return for stock i during period t R_mt = return for the aggregate market during period t -Refer to Exhibit 5.6. What is the abnormal rate of return for Stock A when you consider its systematic risk measure (beta)?